Some of the UK’s wealthiest individuals donate a smaller percentage of their wealth to charity compared to the general population, reports a new study from the Charities Aid Foundation (CAF). Average donations for good causes are at 1.6%, but for high-net-worth individuals, those with at least £1 million in investable assets donate only about 0.4%.
The research covers the major shortfall in charitable contributions among Britain’s wealthiest people who possess a combined figure of £ 2 trillion in investable assets. In the case where all millionaires would contribute 1% of their wealth to charities, that would inject an additional £12 billion worth of funds into the charity sector.
UK’s wealthiest: A sharp disparity in giving habits
The research also revealed disparities between the charitable interests of the wealthy and the general population. While about 28% of the overall UK population supports animal welfare, a very small percentage of millionaires prioritize the cause.
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On the other hand, 60% of wealthy donors support education, while only 4% of the rest of the population does. Also, arts and culture receive a lot more support from wealthy individuals than average citizens, where 26% of the former donated compared to only 3% from the average population.
CAF Edward Garrett noted that the role of philanthropy has been fundamental in financing critical services and breakthroughs in the UK, however, people have developed an increasing distrust of the motives of altruism from the rich.
“The UK has a strong history of philanthropy, but there is cynicism towards it, perhaps more so than in other countries,” he stated.
Further reports show that the younger generation of wealthy donors are starting to recognize philanthropy as more than just a donation. Experts also suggest that government policies can motivate high-net-worth individuals to donate more generously and help foster a giving culture that is beneficial to society.
Irrespective of the differences in giving, the UK’s overall charitable contributions have remained significant. In 2023, the public donated an estimated £13.9 billion to various causes.
However, with greater participation from the country’s wealthiest, the charity sector could receive a much-needed financial boost to tackle pressing local and global challenges.